Take-Two Earnings Triumph Despite ‘GTA 6’ Delay
Take-Two Interactive Software (TTWO) reported impressive fiscal second-quarter earnings but announced a notable delay for its much-anticipated game, “Grand Theft Auto 6.” This development overshadowed the financial success, leading to a drop in stock value.
Impressive Earnings Report
In the quarter ending September 30, Take-Two achieved an adjusted earnings per share of $1.46, significantly higher than analysts’ expectations of 94 cents. Net bookings reached $1.96 billion, surpassing the projected $1.73 billion. This represents a remarkable 121% increase in adjusted earnings year-over-year and a 33% rise in net bookings.
Driving Factors for Success
The company’s success was largely attributed to the performance of its popular titles, including the basketball game “NBA 2K6” and mobile games like “Toon Blast” and “Match Factory.”
Delay of ‘Grand Theft Auto 6’
Despite the strong earnings, Take-Two announced a six-month delay for “Grand Theft Auto 6.” Originally scheduled for release on May 26, the game’s launch has been moved to November 19. The company stated that Rockstar Games needed additional time to ensure the title meets the high standards expected by players.
Future Expectations
Looking ahead, Take-Two projects an adjusted earnings of 80 cents per share for the current quarter, with estimated net bookings of $1.58 billion. This contrasts with Wall Street’s expectations of 76 cents per share on net bookings of $1.49 billion for the fiscal third quarter, ending on December 31.
Annual Projections
For the fiscal year ending March 31, Take-Two increased its net bookings target to between $6.4 billion and $6.5 billion, up from the previous expectation of $6.18 billion. This guidance represents a 14% growth over the previous fiscal year. Additionally, the company estimates adjusted earnings of $3.17 per share, exceeding the consensus estimate of $2.90.
Stock Market Reaction
Following the earnings announcement, Take-Two’s stock experienced a decline. In after-hours trading, shares fell by 9% to $229.69. During regular trading hours, the stock had already decreased by 0.9%, closing at $252.40.
Conclusion
While Take-Two’s earnings triumph showcases strong financial health, the delay of “Grand Theft Auto 6” has created mixed sentiments among investors. As the company focuses on delivering quality gaming experiences, stakeholders will be watching closely for any further developments.
